Answer:
$0.70 and 3.3
Explanation:
Data provided in the question
Household spending for each additional dollar = $0.70
And, the remaining amount = $0.30
So in the given case,
The marginal propensity to consume (MPC) = household spending for each additional dollar i.e $0.70
And, the Spending multiplier is
= 1 ÷ 1 - MPC
= 1 ÷ 1 - $0.70
= 1 ÷ $0.30
= 3.3
Answer:
The section of the Accounting Standards Codification that best helps Michael Co. to determine how the initial proceeds of $800,000 received from Wei Co. (buyer-lessor) are recognized is:
ASC 606.
Explanation:
This section that will help Michael Co. to determine if the transaction qualifies as a sale, which is treated under ASC 606, Revenues from Contracts with Customers. Thereafter, the lease classification criteria in ASC 842 are evaluated. After the evaluation, if none of the criteria from ASC 842 are met to account for the lease as a finance or capital lease, the seller-lessee would classify the lease as an operating lease. This implies that the transaction qualifies as a sale and leaseback transaction.
Incorporation of business means staring a new business in corporate form. At the time of incorporation of a business, it is necessary to file employee policies with the proper state agency important and preparation of articles of incorporation and bylaws, but holding an incorporator's meeting is not a major step.
Hence, the correct answer is:
B. Holding an incorporator's meeting
The most important thing he needs to consider before agrees to a lease is “Will he drive more than 15,000 miles per year?”
This consideration will help Jamir figure the expenses of his travel to the workplace, if the expenses and time it takes to cover the distance is more than he can afford he has another option of renting or leasing a place near his workplace which can be more convenient.
Temperature, oxygen and food
